Application Specific Integrated Circuit Market Trends

Introduction

By 2024 the market for Application-Specific Integrated Circuits (ASICs) is expected to be transformed by a confluence of technological innovations, regulatory changes and changing consumer behavior. The growing adoption of Artificial Intelligence and Machine Learning in various applications is boosting the demand for ASICs with greater functionality and speed. In addition, regulatory changes aimed at promoting energy efficiency and sustainability are pushing manufacturers to develop new products. Meanwhile, the growing preference of consumers for smarter, more efficient and more individualized products is further driving the demand for ASICs. These trends are vital for market participants as they navigate a highly competitive market and align their strategies with evolving demand.

Top Trends

1. Increased Demand for AI and Machine Learning Applications
   The rise of artificial intelligence and machine learning is driving the demand for specialized ASICs to boost performance. Intel and others are investing heavily in the ASICs that can be used for artificial intelligence. By 2023, the market for such chips is expected to grow by 30 percent. This trend is expected to lead to more efficient data processing and lower energy consumption, which will reduce the operating costs. Future developments may include ASICs that can learn and optimize their performance on the fly.
2. Growth in Automotive Electronics
   The automobile industry is increasingly using ASICs for advanced driver assistance systems (ADAS) and electric vehicles (EVs). Infineon and other companies are developing ASICs that improve the safety and efficiency of cars. The market for automotive ASICs is expected to grow significantly. ASICs are expected to improve the performance and safety of vehicles, which will encourage automobile manufacturers to adopt them. ASICs may become standard in all new models.
3. Expansion of IoT Devices
   Among the things which constitute the Internet of Things, the emergence of a great number of ephemeral devices is causing a great demand for low-power ASICs, which can operate efficiently in restricted spaces. NXP Semiconductors, for example, is supplying solutions which are adapted to the needs of the IoT. By 2025, the number of connected IoT devices is expected to reach 30 billion, which will lead to a further increase in the need for more efficient ASICs. In consequence, the competition between the various manufacturers will intensify, and the tendency will be for them to produce ever smaller and more energy-efficient ASICs.
4. Focus on Energy Efficiency and Sustainability
   In the wake of the trend towards a low carbon economy, a strong emphasis is being placed on the energy-saving ASICs. Consequently, TI has developed the ASICs which consume less power and thus meet the international requirements for energy conservation. According to some reports, the operating costs of such devices can be reduced by up to 20 per cent. Such a development will encourage manufacturers to develop more energy-saving ASICs, which will inevitably lead to a further development of the green technology.
5. Advancements in 5G Technology
   High-speed ASICs are needed to cope with the increased data traffic. Qualcomm is in the lead in developing ASICs for 5G applications, which are expected to increase data traffic by a factor of a thousand by 2030. This will lead to increased mobile phone usage and new applications. The future development will probably be based on a more integrated approach with multiple functions.
6. Integration of Security Features
   As cyber-security threats grow, the demand for ASICs with built-in security features is growing. Analog Devices is developing secure ASICs to protect sensitive data in various applications. By 2024, the global market for security solutions is expected to reach $300 billion. This trend will likely lead to closer collaboration between ASIC and security companies to develop better products.
7. Customization and Flexibility in Design
   ASICs have become more and more common, as companies seek to differentiate their products. Renesas is offering a flexible development system, and customers can choose the optimum solution from among a variety of options. This trend will enable us to bring new products to market more quickly, enabling the introduction of new technologies. ASICs themselves may become more modular in the future, so they can be easily adapted to different applications.
8. Emergence of Edge Computing
   Edge computing is gaining ground and reducing latency and network traffic. On Semiconductor is developing ASICs to improve the real-time capabilities of edge computing. The edge computing market is expected to grow substantially, influencing how data is managed and processed. And as this technology develops, it may lead to more sophisticated edge devices that directly integrate advanced data analytics.
9. Collaboration and Partnerships in Development
   Strategic alliances between ASIC manufacturers and the technology industry are becoming increasingly common, in order to accelerate innovation. For example, ST has entered into joint development agreements with a number of technology companies to produce special-purpose ASICs. This trend will strengthen the research and development capability of the companies involved and shorten the time to market. Future strategic alliances may focus on integrating artificial intelligence and machine learning capabilities into ASICs.
10. Regulatory Compliance and Standards
    The growing ASIC market is placing an ever greater emphasis on regulatory compliance, especially in the medical and automobile industries. This is putting greater pressure on manufacturers to ensure that their products are compliant with regulations. This trend is expected to drive innovation in the areas of safety and reliability. Future developments may include the establishment of international standards for the performance and safety of ASICs.

Conclusion: Navigating the ASIC Market Landscape

The ASIC market will be highly competitive and highly fragmented by 2024. The main growth areas will be Asia-Pacific and North America, driven by the development of automation and artificial intelligence. The key to securing a leadership position will be the ability to exploit the possibilities of artificial intelligence, automation, and the development of smart, sustainable, and flexible products. These will be the main challenges facing the industry. The major players are focusing on improving existing products, while the newcomers are introducing agile, niche-oriented solutions. Strategic decision-makers must therefore concentrate on establishing long-term relationships and investments that enhance these capabilities.